Ashton Mining of Canada Inc.
TSX : ACA

Ashton Mining of Canada Inc.

October 05, 2005 17:00 ET

Ashton Mining of Canada Inc.: Drill-Indicated Tonnage of Renard Core Area Increases; Renard 2 Now Estimated at 6.5 Million Tonnes with Continuous Drill Intersection to 562 Metres

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 5, 2005) - Ashton Mining of Canada Inc. ("Ashton" or the "Corporation") (TSX:ACA) is pleased to report that the combined drill-indicated tonnage of Renard 2, 3, 9, 4 and 65 has increased from 22.4 to 25.5 million tonnes. The increase resulted from the summer drilling program that Ashton and its 50:50 joint venture partner, SOQUEM INC., recently completed on the Foxtrot property in north-central Quebec.

The largest drill-indicated tonnage increase was measured at Renard 2, where data from seven holes confirm a 55 percent increase in the size of the body to 6.5 million tonnes. Results from one of these holes confirm that Renard 2 extends to a vertical depth of 562 metres below surface, highlighting the potential to add tonnage at depth with further drilling.

"These results, particularly the tonnage and deep drilling information from Renard 2, are encouraging," said Robert Boyd, Ashton's President and CEO. "More than 11 million tonnes are now estimated for Renard 2, 3 and 9, the three bodies with diamond contents from samples exceeding 92 cpht. This represents a significant step forward for the project when viewed in the context of the modeled value for the Renard diamonds of US$88 per carat."

The table below summarizes the current estimated tonnage for Renard 2, 3, 9, 4 and 65 following completion of the summer 2005 program.



Updated Summary of Estimated Tonnage and Diamond Results -
Renard 2, 3, 9, 4 and 65

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DMS Results - May 2004 to Present
Estimated Drill- ------------------------------------
Indicated Tonnage Weight of Estimated Diamond Content
Kimberlitic (million tonnes) Sample (carats per hundred tonnes
Body (Note 1) (tonnes) or "cpht") (Note 2)
--------------------------------------------------------------------
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Renard 2 6.5 173 92
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Renard 3 1.7 160 124
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Renard 9 3.2 12.2 97 (Note 3)
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11.4
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Renard 4 6.1 179 46
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Renard 65 8.0 165 22
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Total 25.5
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Note 1 - Wardrop Engineering Inc., a geological and engineering
consulting firm, prepared the tonnage estimates. This estimate does
not constitute a mineral resource, and it is uncertain if further
exploration will result in the determination of a mineral resource
on the property.
Note 2 - The estimated diamond content, expressed as cpht of
diamonds greater than 1.18 mm, may not be representative of the
overall diamond content of the individual bodies due to a number
of factors, including the location of the drill holes and the size
of the sample.
Note 3 - The diamond content of this sample is strongly influenced
by two stones weighing 3.58 and 3.26 carats respectively.


Renard 2 and 9

Data from the seven holes drilled into Renard 2 during the summer 2005 program have confirmed the presence of 2.3 million tonnes of kimberlitic material in addition to the 4.2 million tonnes reported on May 9, 2005. Approximately 70 percent of the 6.5 million tonnes is situated at less than 200 metres below surface. A principal objective of the Renard 2 drilling was to determine the vertical extent of the body. Two vertical holes exited kimberlitic material at 444 and 562 metres below surface and a third hole, drilled at an angle, established the contact between the wall rock and the kimberlitic material at approximately 400 metres below surface. The joint venture believes that there is potential to identify additional tonnage at Renard 2 by further drilling.

Data from the three holes drilled at Renard 9 during the summer program indicate an estimated tonnage of 3.2 million tonnes for this body, representing a 33 percent increase over the results reported on May 9. Further drilling of Renard 9 is required to confirm the estimated tonnage of this body and its estimated diamond content.

Renard 4

During the summer program, the joint venture exposed an outcrop at the northern end of Renard 4 over a 500 square metre area and collected a 6.9 tonne sample of material for diamond analysis by dense media separation ("DMS"). As shown in the table below, the 6.9 tonnes of material returned 12.3 carats of diamonds giving the sample an estimated diamond content of 178 cpht. A sample of drill core weighing 0.46 tonnes that was also collected from this area returned an estimated diamond content of 103 cpht.



Northern Renard 4 Outcrop Zone - Cumulative DMS Diamond Results

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Weight Weight of Estimated
of Diamonds Diamond
Sample Recovered Content
Type of Sample Date Reported (tonnes) (carats) (cpht)
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Outcrop October 5, 2005 6.93 12.31 178
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Drill core (Note 1) October 5, 2005 0.46 0.47 103
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Outcrop December 22, 2004 1.77 3.09 175
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Total 9.16 15.87 173
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Note 1 - Core drilling to 35 metres terminated in kimberlitic
material.


As shown in the table, these results are comparable to those derived from a 1.77 tonne sample reported on December 22, 2004 and confirm that Renard 4 includes a northern zone of kimberlitic material characterized by an elevated diamond content. When combined with the results from other samples collected from Renard 4, these results have increased the average estimated diamond content of samples from the body to 46 cpht. While additional drilling is required to better define the limits of the northern zone, the most recent results are very encouraging.

Renard 7 and 8

The joint venture drilled a total of 10 holes into Renard 7 and 8 during the summer program to define a preliminary tonnage estimate for these bodies and to collect material for diamond analysis. The data from Renard 8 suggest that this body contains a drill-indicated 1.2 million tonnes. The current results from Renard 7 suggest that the surface dimensions of this body are approximately 120 metres by 100 metres. Insufficient drilling was completed at Renard 7 to estimate tonnage. A 6.1 tonne sample of drill core from Renard 8 processed by DMS returned an estimated diamond content of 7.7 cpht and a 4.1 tonne sample of material from Renard 7 returned 2.3 cpht. No further work is planned for these bodies.

Next Steps

The joint venture is presently reviewing potential mining scenarios in the context of the current tonnage estimates, and in light of the modeled value of US$88 per carat reported on April 26, to determine the next steps to advance the Quebec project. These steps could include more rigorous definition drilling to better establish the tonnage and estimated diamond content of the bodies and the collection of a larger bulk sample to provide a larger parcel of diamonds for a more refined determination of diamond value. The joint venture expects to reach a decision on these next steps in the coming months.

Exploration Update - Quebec Program

An update on the summer exploration program is expected later in October. This report will include the results of the exploration drilling program, those from the drilling conducted on Renard 10 and an update on the Lynx dyke system and the new dyke reported on September 14.

Ashton Mining of Canada Inc. and SOQUEM INC.

Ashton's prime objective is the discovery or acquisition of diamond prospects capable of rapid advancement to development and production. The Corporation is recognized as one of the leading explorers in the Canadian diamond industry. Ashton's competitive advantages include the significant exploration experience of its key personnel as well as its extensive in-house laboratory facilities in North Vancouver, dedicated exclusively to the Corporation's exploration projects.

SOQUEM INC. is a wholly owned subsidiary of the Societe generale de financement du Quebec ("SGF"). The mission of the SGF, an industrial and financial holding company, is to undertake economic development projects in the industrial sector in cooperation with partners and in compliance with the economic development policies of the Government of Quebec.

Ashton is the operator of the joint venture's exploration programs. Brooke Clements, Professional Geologist and Ashton's Vice President, Exploration is responsible for their design and conduct, and for the verification and quality assurance of analytical results.


Contact Information

  • Ashton Mining of Canada Inc.
    Robert T. Boyd
    President and CEO
    (604) 983-7750
    or
    Ashton Mining of Canada Inc.
    Mike Westerlund
    Manager, Investor Relations
    (604) 983-7750
    contact@ashton.ca
    www.ashton.ca